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WEC Energy (WEC) Q2 Earnings Top Estimates, Revenues Lag

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WEC Energy Group (WEC - Free Report) reported second-quarter 2024 earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 4.7%. However, the bottom line declined 27.2% from the year-ago quarter’s 92 cents per share.

Revenues

Operating revenues of $1.77 billion missed the Zacks Consensus Estimate of $1.86 billion by around 4.8%. The top line also declined 3.3% from $1.83 billion recorded in the year-ago quarter.

 

WEC Energy Group, Inc. Price, Consensus and EPS Surprise WEC Energy Group, Inc. Price, Consensus and EPS Surprise

WEC Energy Group, Inc. price-consensus-eps-surprise-chart | WEC Energy Group, Inc. Quote

Highlights of the Release

Electricity consumption by small commercial and industrial customers increased 0.3% in the second quarter. The same for large commercial and industrial customers, excluding the iron ore mine, decreased 0.1% on a year-over-year basis.

On a weather-normal basis, retail deliveries of electricity, excluding the iron ore mine, declined 0.3%.

Total electric sales volume for the quarter was 10,375 thousand megawatt-hours, up 3.4% year over year.

Total operating expenses were $1.41 billion, up 0.2% from the year-ago quarter’s level of $1.4 billion. This was due to high other operation    and maintenance.

Operating income totaled $364.8 million, down 14.2% from $425.3 million recorded in the year-ago quarter.

The company incurred an interest expense of $200.6 million, up 12.3% from the prior-year quarter’s level of $178.7 million.

Financial Position

As of Jun 30, 2024, WEC had cash and cash equivalents of $224 million compared with $42.9 million as of Dec 31, 2023.

As of Jun 30, 2024, the company had a long-term debt of $16.9 billion compared with $15.5 billion as of Dec 31, 2023.

Net cash provided by operating activities during the first six months of 2024 was $1.9 billion compared with $1.75 billion in the year-ago period.

Guidance

WEC reaffirmed its 2024 earnings projection in the range of $4.80-$4.90 per share. The Zacks Consensus Estimate for the same is pegged at $4.88 per share, higher than the midpoint of the company’s guided range.

WEC Energy Group expects to invest $23.7 billion in the 2024-2028 period.

Zacks Rank

WEC Energy currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

ONE Gas, Inc. (OGS - Free Report) is slated to report second-quarter 2024 results on Aug 5, after market close. The Zacks Consensus Estimate for second-quarter earnings is pegged at 49 cents per share.

OGS’ long-term (three to five years) earnings growth rate is 5%. It delivered an average earnings surprise of 0.9% in the last four quarters.

Atmos Energy Corporation (ATO - Free Report) is slated to report third-quarter fiscal 2024 results on Aug 7, after market close. The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at $1.05 per share.

ATO’s long-term earnings growth rate is 7%. It delivered an average earnings surprise of 3.3% in the last four quarters.

NRG Energy, Inc. (NRG - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.30 per share.

NRG delivered an average earnings surprise of 4.2% in the past four quarters. The Zacks Consensus Estimate for 2024 earnings is pinned at $6.61 per share.

 

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